L Capital-backed PVR to buy Cinemax India

Cine Hospitality - PVR's wholly-owned subsidiary - will acquire a 69.27% stake owned by Cinemax's promoter at INR203.65 apiece. PVR will also purchase an additional 26%, or 7.2 million shares, for the same price through an open offer.

PVR currently operates 213 screens and has a seating capacity of 50,655, while Cinemax runs 138 screens and a capacity of 33,535 seats. The  acquisition of Cinemax is expected to create the largest cinema chain in India with 85 locations.

As part of the transaction, PVR will raise INR2.6 billion from L Capital and new private equity investor Multiples Alternate Asset Management (MAAM). L Capital will put in INR823 million, with the remainder coming from MAAM. The two investors will own 15.8% each after the transaction, Zeebiz reported.

The promoters would also inject about INR250 million into PVR, but its holding will come down to 32%, from 40% earlier.

In August, L Capital invested just under INR1.1 billion in PVR for a 10% stake. As part of the deal, the private equity firm also agreed to set up a joint venture with the Indian firm that will focus on in-mall entertainment, gaming, food and leisure.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Consumer
• Expansion
• Media
• L Capital Asia
• India
• Consumer
• TMT